Contrary
to the efforts made by sugar producers from 12 nations for creating a
strong lobby for sugar trade liberalization at the upcoming WTO talks
to be held on Nov 30, 1999 in Seattle, Pakistan has yet to announce
sugar export policy for the current year.

Despite
the fact that there would be no surplus sugar for exports due to drop
in sugarcane crop production during current year, Pakistan's presence
as a sugar exporting country in the export market is vital for future
export activities.

Leaving
aside current year's situation when no export surplus is available,
Pakistan has gained the export market fairly explored earlier in
campaign launched in 1993-94 and 1994-95 and that status should be
maintained. Pakistan produced about 3.5 million tonnes of white sugar
per year in the past two years. This made available exportable surplus
of 700,000 tonnes each season. Industry has the potential to raise
sugar production to around 7-8 million tonnes a season with improved
yield of sugarcane which demonstrate the potential of the industry.

The
Confederation of Sugar producers in Thailand is making efforts to
constitute a Global Alliance for protection of sugar exports. A formal
announcement in this regard is likely to be made at a ceremony on
November 28 in Seattle, just two days ahead of the WTO talks.

The
alliance would include private producers from Thailand, Brazil and
Australia which would account for 65 per cent of world sugar trade.

The
alliance would lobby governments to add sugar to the list of
agricultural products to be liberalized if the Seattle meeting
approves the millennium round of trade negotiations. Sugar experts
anticipate that if the sugar trade is liberalized by WTO meeting,
International sugar prices are expected to rise by 3-4 cents per
pound.

It is
alleged that the European Union is dumping five million tonnes of
sugar on the world market and criticised the US and Japan for alleged
protectionism and high tariff barriers.

In
addition to Thailand, Brazil and Australia the alliance would include
private producers of sugar from Argentina, Canada, Columbia,
Guatemala, South Africa, Honduras, India, Panama and the Philippines.

After
high level ministerial talks this week, Thailand and Australia agreed
to wage a joint push in Seattle for Liberalization of the trade in
agricultural commodities. Agriculture products would be the most
challenging yet most important issue on the WTO agenda.

Pakistan

The new
government is giving due importance to the agriculture sector which
produces a real strength to Pakistan's economy. The farmers have been
allowed electricity consumption at a highly subsidised rates white
banking system has already been advised to provide agriculture loans
to the farmers at the easy terms. The public sector has also been
advised to intervene into cotton market to ensure fair and timely
return to the growers.

In
order to facilitate sugar export, the government in its export policy
for sugar had enhanced input rebate from Rs1500 to Rs4500 per tonne
last year.

Keeping
in mind the declined sugar production this year the government has not
yet announced export policy for the sugar industry this year. Keeping
a mum on this subject seems an unprofessional attitude as whatever the
production status may be announcement of a policy is indeed necessary
to remain alive in the export market.

Expectations

Mohammed
Ebrahim Hasham, Chief Executive of Mehran Sugar Mills Ltd. while
commenting on business expectations for next millennium said that
there is potential for increasing sugarcane production through
improved yield per acre and sugar production through better recovery.
Sugarcane yield per hectare at an average of 50 tonnes as maximum and
average sugar recovery of 8.7 per cent maximum have oth been once of
the lowest with reference to the principal sugarcane and sugar
producing countries.

The
installed capacity of sugar production in Pakistan industry needs no
further capital outlay at least for a decade. The industry has to
concentrate efforts in its optimizing production capacities. Pakistan
sugar industry has emerged as one of the players in the export arena.

He felt
that future invariably holds promise for those who concentrate on
improvements in productivity of men, money, machines and motivation.
The prosperity of rural economy of Pakistan depends on the role sugar
industry plays, as no other industry needs similarly to be located
close to the farms as is in the case of the sugar industry.

Effective
aggregate sugarcane crushing capacity per day in the country is at
about 380,000 tonnes a day. At national average sugar recovery of 8.8
per cent and working of 76 sugar mills sugar production can be 5.620
million tonnes. To achieve this production level, sugarcane
requirement would work out at 63.863 million tonnes. The dry weather
pls 14 per cent reduction in cultivation area has however rendered the
sugarcane production less than 45 million tonnes this season.

Sugar
production and exports during the past two years were remarkable.